Europe Risks Another Energy Crisis Without Mandatory Reserves
- There’s currently no economic reward for traders to store gas
- Rules need to be in force soon to be effective for next winter
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Europe risks a repeat of this winter’s energy crisis without rules that force utilities to stash away enough gas to ensure security of supply.
After grappling with the lowest stockpiles in more than a decade this heating season, there’s once again no economic incentive for energy giants from RWE AG and Uniper SE to Gazprom PJSC to store the fuel. That’s because traders usually buy cheap gas in the summer to sell it at a higher price later in the year, and that premium has all but vanished from the market.